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Investors in Credit Acceptance Corporation (CACC - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 16, 2026 $220 Put had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Credit Acceptance shares, but what is the fundamental picture for the company? Currently, Credit Acceptance is a Zacks Rank #3 (Hold) in the Financial - Consumer Loans industry that ranks in the Top 35% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $12.04 per share to $12.21 in that period.

Given the way analysts feel about Credit Acceptance right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Southfield, Michigan, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $600.0 million asset-backed non-recourse secured financing (the “Financing”).  Pursuant to this transaction, we conveyed loans having a value of approximately $750.2 million to a wholly owned special purpose entity which will transfer the loans to a trust, which will issue three classes of notes:

Note Class Amount Average Life Price  Interest Rate  A $319,880,000  2.54 years  99.99218%    5.01%  B $117,300,000  3.23 years  99.97598%   5.29%  C $162,820,000  3.69 years  99.98270%   5.51%  The Financing will:

have an expected average annualized cost of approximately 5.5% including upfront fees and other costs;revolve for 24 months after which it will amortize based upon the cash flows on the conveyed loans; andbe used by us to repay higher cost outstanding indebtedness and for general corporate purposes. We will receive 4.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest on the notes as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.

Following the completion of this financing, Credit Acceptance maintained approximately $1.8 billion in unused and available borrowing capacity on its revolving credit facilities and unrestricted cash. “We are pleased with the execution of this $600 million securitization, matching the largest ABS transaction in our history,” said Jay Brinkley, Treasurer of Credit Acceptance. “Strong demand from our investor base enabled us to achieve our lowest credit spreads since late 2021, and while the all-in cost increased modestly from our most recent securitization in May, the increase was driven by higher Treasury rates.”

The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.  

Without our financing programs, consumers are often unable to purchase vehicles, or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

Southfield, Michigan, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) has been named one of PEOPLE Magazine's 100 Companies That Care® by Great Place To Work® and PEOPLE magazine for the fifth consecutive year. Credit Acceptance was ranked 11th among the 100 companies that made the list, up 33 spots from last year.

Investors might want to bet on Credit Acceptance (CACC - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Credit Acceptance basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Credit Acceptance imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Credit AcceptanceThis auto financing company is expected to earn $47.80 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Credit Acceptance. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Credit Acceptance to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Credit Acceptance Corporation (CACC) Q2 2026 Earnings Call Transcript

Southfield, Michigan, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $135.9 million, or $12.66 per diluted share, for the three months ended June 30, 2026. Adjusted net income, a non-GAAP financial measure, for the three months ended June 30, 2026 was $130.1 million, or $12.12 per diluted share. The following table summarizes our financial results:

(In millions, except per share data) For the Three Months Ended  June 30, 2026 March 31, 2026 June 30, 2025GAAP net income $        135.9  $        135.8  $        87.4 GAAP net income per diluted share $        12.66  $        12.40  $        7.42 Adjusted net income $        130.1  $        117.3  $        118.3 Adjusted net income per diluted share $        12.12  $        10.71  $        10.05  “Our second quarter results reflect continued progress across the business, driven by improved profitability, strengthening origination trends, and continued momentum across our dealer network,” said Vinayak Hegde, Chief Executive Officer of Credit Acceptance. “We are encouraged by the progress we made during the quarter and remain focused on profitable growth, disciplined capital allocation, and maximizing long-term intrinsic value per share.”

Second Quarter 2026 Financial Highlights

$8.0 billion average balance of our loan portfolio, consistent with the second quarter of 2025.Consumer Loan assignment unit volume declined 1.0% to 84,615 while dollar volume grew 0.1% to $1.0 billion, compared to the second quarter of 2025. Monthly unit volume returned to year-over-year growth in June, which continued into July.Forecasted net cash flows from our loan portfolio declined by $39.1 million, or 0.3%, compared to a decline of $55.8 million, or 0.5%, in the second quarter of 2025.262,963 shares, or 2.5% of the shares outstanding at the beginning of the quarter, were repurchased at a cost of $141.4 million.$43.5 million in dealer holdback and accelerated dealer holdback payments to dealers.$1.4 billion in liquidity (amounts available for borrowing under revolving lines of credit and unrestricted cash and cash equivalents) as of June 30, 2026. “We continue to make meaningful progress in our digital-first, AI-enabled strategy,” said Mr. Hegde. “From enhancing the dealer experience through improved deal structuring and workflow tools to scaling AI-enabled servicing capabilities, we are using data and technology to create a more personalized experience for dealers and consumers. At the center of this work is a commitment to customer obsession — better understanding our customers, anticipating their needs, and delivering a better experience at every interaction.”

Second Quarter 2026 Company Highlights

Enrolled 1,456 new dealers in our programs with a record 11,004 active dealers during the quarter, reflecting continued engagement across our dealer network.Made continued progress executing our product roadmap, including the following initiatives: Deal optimization: Enhanced our deal structuring experience, which helps dealers find an optimal deal. 90% of active dealers used the new capability during the quarter.AI-enabled call-center agent: 67% of inbound customer service and account solutions calls were routed to the AI agent in June, up from 27% in March, driving improved efficiency, enabling faster 24/7 customer self-service, and reducing cost-to-serve at scale. This performance reflects continued expansion of a production-deployed AI capability that is now integrated into core servicing workflows. We expect further gains in call handling and unit economics as we scale this platform throughout 2026. Named one of the 100 Best Companies to Work For® by Great Place to Work® and Fortune magazine for the twelfth time, with a #18 ranking, our highest ranking ever. Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested. 

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of June 30, 2026, with the aggregated forecasts as of March 31, 2026 and at the time of assignment, segmented by year of assignment:

  Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan Assignment Year June 30, 2026 March 31, 2026 Initial
Forecast March 31, 2026 Initial
Forecast2017         64.8 %         64.8 %         64.0 %         0.0 %         0.8 %2018         65.6 %         65.6 %         63.6 %         0.0 %         2.0 %2019         67.3 %         67.3 %         64.0 %         0.0 %         3.3 %2020         68.1 %         68.1 %         63.4 %         0.0 %         4.7 %2021         64.1 %         64.0 %         66.3 %         0.1 %         -2.2 %2022         59.3 %         59.3 %         67.5 %         0.0 %         -8.2 %2023         62.9 %         63.1 %         67.5 %         -0.2 %         -4.6 %2024         65.1 %         65.3 %         67.2 %         -0.2 %         -2.1 %2025         66.9 %         67.2 %         67.0 %         -0.3 %         -0.1 %      2026 (2)         67.1 %         66.3 %         67.2 %         0.8 %         -0.1 % (1)   Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment, including both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates. Any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.
(2)   The forecasted collection rate for 2026 Consumer Loans as of June 30, 2026 includes both Consumer Loans that were in our portfolio as of March 31, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:

  Forecasted Collection Percentage as of Current Forecast Variance from2026 Consumer Loan Assignment Period June 30, 2026 March 31, 2026 Initial
Forecast March 31, 2026 Initial
ForecastJanuary 1, 2026 through March 31, 2026         66.5 %         66.3 %         66.6 %         0.2 %         -0.1 %April 1, 2026 through June 30, 2026         67.7 %         —           67.9 %         —           -0.2 % For the three months ended June 30, 2026, forecasted collection rates declined for Consumer Loans assigned in 2023 through 2025 and were generally consistent with expectations at the start of the period for all other assignment years presented. For Consumer Loans assigned in 2026, the increase in forecasted collection rate from March 31, 2026 was primarily due to a higher initial forecast on Consumer Loans assigned during the second quarter.

The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last eight quarters are shown in the following table:

(Dollars in millions) Decrease in Forecasted Net Cash FlowsThree Months Ended Total Loans % Change from Forecast at Beginning of PeriodSeptember 30, 2024 $        (62.8)          -0.6 %December 31, 2024          (31.1)          -0.3 %March 31, 2025          (20.9)          -0.2 %June 30, 2025          (55.8)          -0.5 %September 30, 2025          (58.6)          -0.5 %December 31, 2025          (34.2)          -0.3 %March 31, 2026          (9.1)          -0.1 %June 30, 2026          (39.1)          -0.3 % The following table presents information on Consumer Loan assignments for each of the last 10 years:

   Average Total Assignment Volume Consumer Loan
Assignment Year Consumer Loan (1) Advance (2) Initial Loan Term (in months) Unit Volume Dollar Volume (2)
(in millions)2017 $        20,230 $        8,746 55 328,507 $        2,873.12018  22,158  9,635 57 373,329  3,595.82019  23,139  10,174 57 369,805  3,772.22020  24,262  10,656 59 341,967  3,641.22021  25,632  11,790 59 268,730  3,167.82022  27,242  12,924 60 280,467  3,625.32023  27,025  12,475 61 332,499  4,147.82024  26,497  11,961 61 386,126  4,618.42025  25,423  11,428 60 337,411  3,856.1       2026 (3) (4)  25,355  11,449 60 180,607  2,067.8 (1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.
(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.
(3)   Represents activity for the six months ended June 30, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.
(4)   The averages for 2026 Consumer Loans include both Consumer Loans that were in our portfolio as of March 31, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:

  Average2026 Consumer Loan Assignment Period Consumer Loan Advance Initial Loan Term (in months)January 1, 2026 through March 31, 2026 $        25,050 $        11,132         60April 1, 2026 through June 30, 2026          25,701          11,809         60 The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, spreads (the forecasted collection rate less the advance rate), and forecasted future net cash flows as of June 30, 2026, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

  Forecasted Collection %   Spread % as of (2) Forecasted Future Net Cash Flows (3) Consumer Loan Assignment Year June 30, 2026 Initial Forecast Advance % (1) June 30, 2026 Initial Forecast June 30, 2026 (in millions) % of Total2017         64.8 %         64.0 %         43.2 %         21.6 %         20.8 % $        17.4          0.1 %2018         65.6 %         63.6 %         43.5 %         22.1 %         20.1 %          37.5          0.3 %2019         67.3 %         64.0 %         44.0 %         23.3 %         20.0 %          70.0          0.6 %2020         68.1 %         63.4 %         43.9 %         24.2 %         19.5 %          124.1          1.1 %2021         64.1 %         66.3 %         46.0 %         18.1 %         20.3 %          289.6          2.5 %2022         59.3 %         67.5 %         47.4 %         11.9 %         20.1 %          698.1          5.9 %2023         62.9 %         67.5 %         46.2 %         16.7 %         21.3 %          1,361.3          11.6 %2024         65.1 %         67.2 %         45.1 %         20.0 %         22.1 %          2,559.4          21.8 %2025         66.9 %         67.0 %         45.0 %         21.9 %         22.0 %          4,097.8          34.9 %2026 (4) (5)         67.1 %         67.2 %         45.2 %         21.9 %         22.0 %          2,498.5          21.2 %Total $        11,753.7          100.0 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.
(2)   Represents the forecasted collection rate less the advance rate.
(3)   Represents the forecasted future collections we expect to collect on Consumer Loans less the forecasted future dealer holdback and accelerated dealer holdback payments we expect to make to dealers.
(4)   Represents activity for the six months ended June 30, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.
(5)   The forecasted collection rate, advance rate and spread for 2026 Consumer Loans as of June 30, 2026 include both Consumer Loans that were in our portfolio as of March 31, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:

  Forecasted Collection % as of   Spread % as of2026 Consumer Loan Assignment Period June 30, 2026 Initial Forecast Advance % June 30, 2026 Initial ForecastJanuary 1, 2026 through March 31, 2026         66.5 %         66.6 %         44.5 %         22.0 %         22.1 %April 1, 2026 through June 30, 2026         67.7 %         67.9 %         46.1 %         21.6 %         21.8 % The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. Because Consumer Loans assigned in 2022 and prior years represent only approximately 10% of total forecasted future net cash flows from Consumer Loans, changes in the forecasted collection rate for those loans would generally be expected to have a relatively modest impact on total forecasted future net cash flows. In contrast, Consumer Loans assigned since 2022 represent a larger portion of expected future net cash flows, and a significant portion of their total forecasted collections has not yet been realized. Accordingly, changes in the forecasted collection rate for those more recent loans would generally be expected to have a more significant impact on total forecasted future net cash flows.

The spread between the forecasted collection rate as of June 30, 2026 and the advance rate ranges from 11.9% to 24.2%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2021 through 2024 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The spread as of June 30, 2026 on 2026 Consumer Loans was 21.9%, consistent with 2025 Consumer Loans.

The following table compares our forecast of aggregate Consumer Loan collection rates as of June 30, 2026 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

  Dealer Loans Purchased Loans  Forecasted Collection Percentage as of (1)   Forecasted Collection Percentage as of (1)   Consumer Loan Assignment Year June 30,
2026 Initial
Forecast Variance June 30,
2026 Initial
Forecast Variance2017         64.1 %         63.8 %         0.3 %         66.4 %         64.6 %         1.8 %2018         65.0 %         63.6 %         1.4 %         66.8 %         63.5 %         3.3 %2019         66.9 %         63.9 %         3.0 %         67.9 %         64.2 %         3.7 %2020         67.9 %         63.3 %         4.6 %         68.4 %         63.6 %         4.8 %2021         63.8 %         66.3 %         -2.5 %         64.7 %         66.3 %         -1.6 %2022         58.5 %         67.3 %         -8.8 %         61.3 %         68.0 %         -6.7 %2023         61.6 %         66.8 %         -5.2 %         66.3 %         69.4 %         -3.1 %2024         63.8 %         66.3 %         -2.5 %         69.7 %         70.7 %         -1.0 %2025         65.3 %         65.5 %         -0.2 %         71.5 %         71.5 %         0.0 %2026         65.7 %         65.9 %         -0.2 %         70.2 %         70.3 %         -0.1 % (1)   The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment, including both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates. Any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of June 30, 2026 for dealer loans and purchased loans separately.  All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

  Dealer Loans Purchased Loans Consumer Loan Assignment Year Forecasted Collection % (1) Advance % (1)(2) Spread % Forecasted Collection % (1) Advance % (1)(2) Spread %2017         64.1 %         42.1 %         22.0 %         66.4 %         45.8 %         20.6 %2018         65.0 %         42.7 %         22.3 %         66.8 %         45.2 %         21.6 %2019         66.9 %         43.1 %         23.8 %         67.9 %         45.6 %         22.3 %2020         67.9 %         43.0 %         24.9 %         68.4 %         45.5 %         22.9 %2021         63.8 %         45.1 %         18.7 %         64.7 %         47.7 %         17.0 %2022         58.5 %         46.4 %         12.1 %         61.3 %         50.1 %         11.2 %2023         61.6 %         44.8 %         16.8 %         66.3 %         49.8 %         16.5 %2024         63.8 %         44.1 %         19.7 %         69.7 %         48.9 %         20.8 %2025         65.3 %         43.2 %         22.1 %         71.5 %         50.4 %         21.1 %2026         65.7 %         43.3 %         22.4 %         70.2 %         49.9 %         20.3 % (1)   The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.
(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of June 30, 2026 on 2026 dealer loans was 22.4%, as compared to a spread of 22.1% on 2025 dealer loans. The increase was a result of a higher initial spread on 2026 dealer loans, due to the initial forecast increasing by a greater margin than the advance rate in our dealer loan portfolio.

The spread as of June 30, 2026 on 2026 purchased loans was 20.3%, as compared to a spread of 21.1% on 2025 purchased loans. The decrease was primarily a result of a lower initial spread on 2026 purchased loans, due to the initial forecast decreasing by a greater margin than the advance rate in our purchased loan portfolio.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

  Year over Year Percent ChangeThree Months Ended Unit Volume Dollar Volume (1)September 30, 2024         17.7 %         12.2 %December 31, 2024         0.3 %         -4.9 %March 31, 2025         -10.1 %         -15.5 %June 30, 2025         -14.6 %         -18.8 %September 30, 2025         -16.5 %         -19.4 %December 31, 2025         -9.1 %         -11.3 %March 31, 2026         -4.3 %         -4.0 %June 30, 2026         -1.0 %         0.1 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit volume declined 1.0% while dollar volume increased 0.1% during the second quarter of 2026 as the number of active dealers increased 3.3% and the average unit volume per active dealer declined 3.8%. Monthly unit volume returned to year-over-year growth in June, which continued into July. Unit volume for July 2026 increased 28.0% compared to the same period in 2025.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

 For the Three Months Ended June 30,   2026 2025 % ChangeConsumer Loan unit volume        84,615          85,486          -1.0 %Active dealers (1)        11,004          10,655          3.3 %Average volume per active dealer        7.7          8.0          -3.8 %      Consumer Loan unit volume from dealers active both periods        67,910          71,711          -5.3 %Dealers active both periods        6,860          6,860          —  Average volume per dealer active both periods        9.9          10.5          -5.3 %      Consumer loan unit volume from dealers not active both periods        16,705          13,775          21.3 %Dealers not active both periods        4,144          3,795          9.2 %Average volume per dealer not active both periods        4.0          3.6           11.1% (1)   Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers: 

 For the Three Months Ended June 30,   2026  2025  % ChangeConsumer Loan unit volume from new active dealers        3,172            3,216           -1.4 %New active dealers (1)        1,210            1,094           10.6 %Average volume per new active dealer        2.6            2.9           -10.3 %      Attrition (2)        -16.1 %         -17.4 %   (1)   New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.
(2)   Attrition is measured according to the following formula:  decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

  Unit Volume Dollar Volume (1)Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased LoansSeptember 30, 2024         79.5 %         20.5 %         78.4 %         21.6 %December 31, 2024         78.7 %         21.3 %         77.7 %         22.3 %March 31, 2025         77.0 %         23.0 %         75.1 %         24.9 %June 30, 2025         71.6 %         28.4 %         68.3 %         31.7 %September 30, 2025         73.1 %         26.9 %         70.6 %         29.4 %December 31, 2025         74.7 %         25.3 %         72.4 %         27.6 %March 31, 2026         72.0 %         28.0 %         69.2 %         30.8 %June 30, 2026         68.5 %         31.5 %         65.2 %         34.8 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

As of June 30, 2026 and December 31, 2025, the net dealer loans receivable balance was 71.0% and 72.1%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)For the Three Months Ended June 30,    2026  2025 % ChangeGAAP average debt$        6,352.8  $        6,583.8          -3.5 %GAAP average shareholders' equity         1,546.7           1,635.9           -5.5 %Average capital$        7,899.5  $        8,219.7          -3.9 %GAAP net income$        135.9  $        87.4          55.5 %Diluted weighted average shares outstanding 10,734,652   11,771,525          -8.8 %GAAP net income per diluted share$        12.66  $        7.42          70.6 % The increase in GAAP net income for the three months ended June 30, 2026, as compared to the same period in 2025, was primarily a result of the following:

A decrease in operating expenses of 13.8% ($21.4 million), primarily due to: A decrease in general and administrative expense of 42.3% ($19.1 million), primarily due to the recognition of a $23.4 million contingent loss during the three months ended June 30, 2025 related to previously disclosed legal matters. The decrease was partially offset by higher professional services costs related to strategic market analysis initiatives.A decrease in salaries and wages expense of 6.7% ($5.6 million), primarily due to a reduction in headcount. The impact of team member separation costs on operating expenses in the second quarter of 2026 was not material, as higher severance expense was offset by lower stock-based compensation expense. A decrease in provision for credit losses of 7.8% ($13.4 million), due to: A decrease in provision for credit losses on forecast changes of $19.7 million, reflecting a smaller decline in Consumer Loan performance and changes in forecasted net cash flow timing. We have continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments.An increase in provision for credit losses on new Consumer Loan assignments of $6.3 million, primarily due to a 10.0% increase in the average provision per Consumer Loan assignment, partially offset by a 1.0% decrease in Consumer Loan assignment unit volume. The increase in the average provision per Consumer Loan assignment was primarily due to a higher average provision for purchased loans, driven by a lower initial forecast and spread, and a greater proportion of purchased loans in the mix of Consumer Loan assignments received during the second quarter of 2026. A decrease in interest expense of 9.1% ($10.7 million), due to decreases in our average cost of debt and our average outstanding debt balance.An increase in finance charges of 1.0% ($5.5 million), primarily due to an increase in the average yield on our loan portfolio primarily due to higher contractual yields on more recent Consumer Loan assignments. Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” section. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, interest expense (after-tax), adjusted net income plus interest expense (after-tax), adjusted return on capital, adjusted revenue, adjusted operating expenses, adjusted loans receivable, adjusted finance charges, adjusted average loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months ended June 30, 2026, compared to the same period in 2025, include the following:

(Dollars in millions, except per share data)For the Three Months Ended June 30,    2026   2025  % ChangeAdjusted average capital$        8,585.7   $        8,932.7           -3.9 %Adjusted net income$        130.1   $        118.3           10.0 %Interest expense (after-tax)$        80.5   $        88.6           -9.1 %Adjusted net income plus interest expense (after-tax)$        210.6   $        206.9           1.8 %Adjusted return on capital         9.8 %          9.3 %         5.4 %Cost of capital         7.4 %          7.4 %         — %Economic profit$        52.6   $        41.8           25.8 %Diluted weighted average shares outstanding 10,734,652    11,771,525           -8.8 %Adjusted net income per diluted share$        12.12   $        10.05           20.6 %Economic profit per diluted share$        4.90   $        3.55           38.0 % Economic profit increased 25.8% for the three months ended June 30, 2026, as compared to the same period in 2025. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended June 30, 2026, as compared to the same period in 2025:

(In millions)Year over Year Change in Economic Profit For the Three Months Ended June 30, 2026Increase in adjusted return on capital$        11.8  Decrease in cost of capital         0.6  Decrease in adjusted average capital         (1.6) Increase in economic profit$        10.8   The increase in economic profit for the three months ended June 30, 2026, as compared to the same period in 2025, was primarily a result of an increase in our adjusted return on capital of 50 basis points, primarily due to the following:

An increase in the yield used to recognize adjusted finance charges on our loan portfolio increased our adjusted return on capital by 80 basis points, primarily due to higher expected yields on more recent Consumer Loan assignments, partially offset by a decline in Consumer Loan performance and slower forecasted net cash flow timing since the second quarter of 2025. We have continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments.An increase in adjusted operating expenses decreased our adjusted return on capital by 30 basis points as adjusted operating expenses increased by 1.5% while adjusted average capital decreased by 3.9%. The increase in adjusted operating expenses was primarily due to higher professional services costs related to strategic market analysis initiatives. The impact of team member separation costs on adjusted operating expenses in the second quarter of 2026 was not material, as higher severance expense was offset by lower stock-based compensation expense. The following table shows adjusted finance charges as a percentage of adjusted average loans receivable, adjusted revenue and adjusted operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

  For the Three Months Ended  Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024Adjusted finance charges as a percentage of adjusted average loans receivable (1)         17.4 %         17.0 %         16.9 %         16.8 %         17.0 %         16.7 %         16.5 %         16.4 %Adjusted revenue as a percentage of adjusted average capital (1)         19.3 %         19.0 %         18.8 %         18.6 %         18.3 %         18.0 %         18.4 %         18.2 %Adjusted operating expenses as a percentage of adjusted average capital (1)         6.2 %         6.6 %         5.8 %         6.1 %         5.9 %         6.1 %         5.6 %         5.8 %Adjusted return on capital (1)         9.8 %         9.3 %         9.8 %         9.4 %         9.3 %         9.2 %         9.8 %         9.6 %Percentage change in adjusted average capital compared to the same period in the prior year         -3.9 %         -3.9 %         0.3 %         3.7 %         11.2 %         18.3 %         19.3 %         19.4 % (1)   Annualized.

The increase in adjusted return on capital for the three months ended June 30, 2026, as compared to the three months ended March 31, 2026, was primarily due to:

An increase in yield used to recognize adjusted finance charges on our loan portfolio, which increased our adjusted return on capital by 30 basis points, primarily due to higher yields on more recent Consumer Loan assignments, partially offset by a decline in Consumer Loan performance and slower forecasted net cash flow timing during 2026. We have continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments.A decrease of $7.1 million, or 5.0%, in adjusted operating expenses, which increased adjusted return on capital by 20 basis points, while adjusted average capital increased by 0.6%. The decrease in adjusted operating expenses was primarily due to a reduction in headcount. The impact of team member separation costs on adjusted operating expenses in the second quarter of 2026 was not material, as higher severance expense was substantially offset by lower stock-based compensation expense. The following tables provide a reconciliation of non-GAAP measures to GAAP measures.  Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data) For the Three Months Ended  Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024Adjusted net income                GAAP net income $        135.9   $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9   $        78.8  Floating yield adjustment (after-tax)          (115.8)           (118.7)           (115.9)           (119.0)           (117.1)           (118.9)           (116.8)           (115.1) GAAP provision for credit losses (after-tax)          119.4            104.7            97.2            114.0            129.6            124.6            95.0            142.2  Contingent loss (after-tax) (1)          —            —            26.9            11.2            17.5            —            —            5.7  Income tax adjustment (2)          (9.4)           (4.5)           (4.2)           3.5            0.9            2.8            (4.1)           3.2  Adjusted net income $        130.1   $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0   $        114.8  Adjusted net income per diluted share $        12.12   $        10.71   $        11.35   $        10.28   $        10.05   $        9.35   $        10.17          $        9.25  Diluted weighted average shares outstanding  10,734,652    10,954,097    11,103,715    11,472,729    11,771,525    12,279,446    12,388,072    12,415,143  Adjusted revenue                GAAP total revenue $        587.4   $        580.0   $        579.9   $        582.4   $        583.8   $        571.1   $        565.9   $        550.3  Floating yield adjustment          (154.4)           (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8)           (149.4) GAAP provision for claims          (18.0)           (15.8)           (17.2)           (18.6)           (19.8)           (16.1)           (17.7)           (18.5) Adjusted revenue $        415.0   $        406.0   $        408.2   $        405.1   $        408.0   $        400.5   $        396.4   $        382.4  Adjusted average capital                GAAP average debt $        6,352.8   $        6,271.8   $        6,409.6   $        6,400.1   $        6,583.8   $        6,398.3   $        6,202.5   $        6,071.1  GAAP average shareholders' equity          1,546.7            1,575.4            1,545.2            1,573.4            1,635.9            1,782.0            1,712.3            1,594.2  Income tax adjustment (3)          (96.9)           (96.9)           (96.9)           (96.9)           (100.5)           (118.5)           (118.5)           (118.5) Floating yield adjustment          783.1            787.4            805.0            822.6            813.5            820.8            837.0            840.8  Adjusted average equity          2,232.9            2,265.9            2,253.3            2,299.1            2,348.9            2,484.3            2,430.8            2,316.5  Adjusted average capital $        8,585.7   $        8,537.7   $        8,662.9   $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3   $        8,387.6  Adjusted revenue as a percentage of adjusted average capital (4)          19.3 %          19.0 %          18.8 %          18.6 %          18.3 %          18.0 %          18.4 %          18.2 %Adjusted loans receivable                GAAP loans receivable, net $        7,959.2    $        7,956.4   $        7,909.2   $        7,975.5   $        8,001.9   $        7,978.2   $        7,850.3   $        7,781.5  Floating yield adjustment          1,051.1            1,046.3            1,064.9            1,089.7            1,096.4            1,079.8            1,072.4            1,100.8  Adjusted loans receivable $        9,010.3   $        9,002.7   $        8,974.1   $        9,065.2   $        9,098.3    $        9,058.0   $        8,922.7   $        8,882.3  Adjusted loan yield                GAAP finance charges $        546.2   $        538.4   $        535.0   $        539.4   $        540.7   $        526.7   $        518.2   $        507.6  Floating yield adjustment          (154.4)           (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8)           (149.4) Adjusted finance charges $        391.8   $        380.2   $        380.5   $        380.7   $        384.7   $        372.2   $        366.4   $        358.2  GAAP average loans receivable, net $        7,953.2   $        7,893.7   $        7,940.5   $        7,990.5   $        8,011.6   $        7,882.4   $        7,831.4   $        7,690.9  Average floating yield adjustment          1,035.5            1,037.9            1,058.0            1,080.9            1,064.1            1,048.9            1,071.4            1,072.2  Adjusted average loans receivable $        8,988.7   $        8,931.6   $        8,998.5   $        9,071.4   $        9,075.7   $        8,931.3   $        8,902.8   $        8,763.1  Adjusted finance charges as a percentage of adjusted average loans receivable (4)          17.4 %          17.0 %          16.9 %          16.8  %          17.0 %          16.7 %          16.5 %          16.4 % (1)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted net income.
(2)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment in December 2017 of Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”). The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(3)   The enactment of the 2017 Tax Act resulted in the reversal of provision for income taxes to reflect a new, lower federal statutory income tax rate. We began applying the income tax adjustment at that time to remove the impact of this reversal from adjusted average capital. As the enactment of Public Law 119-21 on July 4, 2025 made the lower federal statutory tax rate permanent, removing uncertainty on the future federal statutory income tax rate, we increased our estimated long-term effective income tax rate from 23% to 25% to reflect higher expected state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation in future periods. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
(4)   Annualized.

(Dollars in millions) For the Three Months Ended  Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024Interest expense (after-tax)                GAAP interest expense $        107.4   $        108.4   $        113.8   $        116.3   $        118.1   $        114.7   $        111.3   $        111.2  Adjustment to record tax effect (1)          (26.9)           (27.2)           (28.5)           (29.0)           (29.5)           (26.4)           (25.6)           (25.6) Interest expense (after-tax) $        80.5   $        81.2   $        85.3   $        87.3   $        88.6   $        88.3   $        85.7   $        85.6  Adjusted return on capital (2)                Adjusted net income $        130.1   $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0   $        114.8  Interest expense (after-tax)          80.5            81.2            85.3            87.3            88.6            88.3            85.7            85.6  Adjusted net income plus interest expense (after-tax) $        210.6   $        198.5   $        211.3   $        205.2   $        206.9   $        203.1   $        211.7   $        200.4  Reconciliation of GAAP return on equity to adjusted return on capital (5)                GAAP return on equity (3)          35.1 %          34.5 %          31.6 %          27.5 %          21.4 %          23.9 %          35.5 %          19.8 %Non-GAAP adjustments          -25.3 %          -25.2 %          -21.8 %          -18.1 %          -12.1 %          -14.7 %          -25.7 %          -10.2 %Adjusted return on capital (2)          9.8 %          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %          9.6 %                 Economic profit                Adjusted return on capital          9.8 %          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %          9.6 %Cost of capital (4) (5)          7.4 %          7.4 %          7.3 %          7.5 %          7.4 %          7.6 %          7.4 %          7.3 %Adjusted return on capital in excess of cost of capital          2.4 %          1.9 %          2.5 %          1.9 %          1.9 %          1.6 %          2.4 %          2.3 %Adjusted average capital $        8,585.7   $        8,537.7   $        8,662.9    $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3   $        8,387.6  Economic profit $        52.6    $        41.6   $        53.3    $        43.0   $        41.8   $        35.3   $        51.3   $        47.1  Reconciliation of GAAP net income to economic profit                GAAP net income $        135.9   $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9   $        78.8  Non-GAAP adjustments          (5.8)           (18.5)           4.0            9.7            30.9            8.5            (25.9)           36.0  Adjusted net income          130.1            117.3            126.0            117.9            118.3            114.8            126.0            114.8  Interest expense (after-tax)          80.5            81.2            85.3            87.3            88.6            88.3            85.7            85.6  Adjusted net income plus interest expense (after-tax)          210.6            198.5            211.3            205.2            206.9            203.1            211.7            200.4  Less: cost of capital          158.0            156.9            158.0            162.2            165.1            167.8            160.4            153.3  Economic profit $        52.6   $        41.6   $        53.3   $        43.0   $        41.8   $        35.3   $        51.3   $        47.1  Economic profit per diluted share $        4.90   $        3.80   $        4.80   $        3.75   $        3.55   $        2.87   $        4.14   $        3.79  Adjusted operating expenses                Operating expenses $        134.1   $        141.2   $        162.3   $        146.6   $        155.5   $        135.5   $        121.6   $        129.4  Contingent loss (6)          —            —            (35.8)           (15.0)           (23.4)           —            —            (7.4) Adjusted operating expenses $        134.1   $        141.2   $        126.5   $        131.6   $        132.1   $        135.5   $        121.6   $        122.0  Adjusted operating expenses as a percentage of adjusted average capital (5)          6.2 %          6.6 %          5.8 %          6.1 %          5.9 %          6.1 %          5.6 %          5.8 %Percentage change in adjusted average capital compared to the same period in the prior year          -3.9 %          -3.9 %          0.3 %          3.7 %          11.2 %          18.3 %          19.3 %          19.4 % (1)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment of the 2017 Tax Act. The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(2)   Adjusted return on capital is defined as adjusted net income plus interest expense (after-tax) divided by adjusted average capital.
(3)   Calculated by dividing GAAP net income by GAAP average shareholders' equity.
(4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

  For the Three Months Ended  Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024Average 30-year Treasury rate         5.0 %         4.8 %         4.7 %         4.9 %         4.8 %         4.7 %         4.4 %         4.3 %Pre-tax average cost of debt (5)         6.8 %         6.9 %         7.1 %         7.3 %         7.2 %         7.2 %         7.2 %         7.3 % (5)   Annualized.
(6)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted operating expenses.

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; andfinance charge revenue in subsequent periods that is significantly in excess of our expected yield. Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.The concentration in several states of automobile dealers who participate in our programs could adversely affect us.Reliance on our outsourced business functions could adversely affect our business.Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.We may be unable to execute our business strategy due to current economic conditions.Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders. Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.The terms of our debt limit how we conduct our business.A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations. Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.The development and use of artificial intelligence presents risks and challenges that may adversely impact our business. Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.The regulations to which we are or may become subject could result in a material adverse effect on our business. Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on August 4, 2026 at 5:00 p.m. Eastern Time to discuss our second quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 

To participate in the webcast by telephone, you must pre-register at https://register-conf.media-server.com/register/BIae559f98efc046ca8a17b56adc9a49e8, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
        

(Dollars in millions, except per share data)For the Three Months Ended June 30,  2026  2025Revenue:   Finance charges$        546.2  $        540.7 Premiums earned         24.6           24.1 Other income         16.6           19.0 Total revenue         587.4           583.8 Costs and expenses:   Salaries and wages         78.1           83.7 General and administrative         26.1           45.2 Sales and marketing         29.9           26.6 Total operating expenses         134.1           155.5     Provision for credit losses on forecast changes         81.6           101.3 Provision for credit losses on new Consumer Loan assignments         77.6           71.3 Total provision for credit losses         159.2           172.6     Interest         107.4           118.1 Provision for claims         18.1           19.8 Total costs and expenses         418.8           466.0 Income before provision for income taxes         168.6           117.8 Provision for income taxes         32.7           30.4 Net income$        135.9   $        87.4     Net income per share:   Basic$        12.97  $        7.55 Diluted$        12.66  $        7.42     Weighted average shares outstanding:   Basic         10,481,009           11,574,018 Diluted         10,734,652           11,771,525  CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)As of June 30, 2026 December 31, 2025ASSETS:   Cash and cash equivalents$        1.4   $        22.8  Restricted cash and cash equivalents         490.7            477.9  Restricted securities available for sale         116.6            106.2      Loans receivable         11,608.7            11,511.5  Allowance for credit losses         (3,649.5)           (3,602.3) Loans receivable, net         7,959.2            7,909.2      Property and equipment, net         14.1            12.6  Income taxes receivable         8.4            67.2  Other assets         32.2            35.8  Total assets$        8,622.6   $        8,631.7      LIABILITIES AND SHAREHOLDERS' EQUITY:   Liabilities:   Accounts payable and accrued liabilities$        394.0   $        400.2  Revolving secured lines of credit         177.8            107.3  Secured financing         5,019.0            5,158.8  Senior notes         1,089.4            1,087.8  Deferred income taxes, net         349.2            354.0  Income taxes payable         4.3            —  Total liabilities         7,033.7            7,108.1      Shareholders’ Equity:   Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued         —            —  Common stock, $.01 par value, 80,000,000 shares authorized, 10,376,049 and 10,680,143 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively         0.1            0.1  Paid-in capital         507.9            403.3  Retained earnings         1,081.1            1,119.2  Accumulated other comprehensive income (loss)         (0.2)           1.0  Total shareholders’ equity         1,588.9            1,523.6  Total liabilities and shareholders’ equity$        8,622.6   $        8,631.7  

Southfield, Michigan, July 27, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”), announced leadership changes designed to advance our digital-first strategy and position the Company for long-term success.

Siddharth Lal is joining the Company as Chief Marketing Officer. In this role, Mr. Lal will lead Credit Acceptance’s Marketing organization and will have ongoing executive leadership responsibility for Product, bringing the Company’s customer, dealer, product, and brand efforts under a more integrated leadership structure. He will lead efforts to deepen customer insights, enhance dealer and consumer engagement; bring innovative products and solutions to market; and support the Company’s next phase of growth and evolution.

Mr. Lal has significant experience leading growth at scale and a strong understanding of customer needs across a wide range of consumer segments, including subprime consumers. During more than 20 years at T-Mobile, most recently as Senior Vice President – Commercial Management, he helped drive customer growth, sharpen the company’s market position, and build high-performing teams with strong commercial execution.

“Under Sid’s leadership, we will deepen our understanding of our customers, build differentiated products, and deliver experiences that are simpler, faster, and more effective,” said Vinayak Hegde, Chief Executive Officer. “Sid brings deep expertise in Product, Marketing, and business transformation, along with a proven ability to translate strategy into growth.”

“I am excited to partner with an exceptional leadership team, to serve my team and the organization, and to work alongside an incredible network of dealers,” said Mr. Lal. “The focus is clear: drive growth and retention with the consumer, the dealer, and the team at the center, through a digital-first strategy that simplifies and improves the experience for all, creating real and lasting value.”

The Company also has hired and plans to announce a new Chief Technology Officer in late August. These executive leadership changes reflect the Company’s decision to bring leaders with proven transformation experience and new capabilities to product, marketing, and technology as we advance the next phase of our digital-first strategy. Mr. Hegde will work closely with the leadership team to maintain momentum across the Company’s product roadmap, technology modernization efforts, and dealer and consumer experience initiatives.

In connection with these changes, Andrew Rostami, Chief Product and Marketing Officer, and Ravi Mohan, Chief Technology Officer, will step down, effective August 14, 2026. The Company expects both leaders to support a smooth transition of responsibilities in the next six months and appreciates their contributions during a period of modernization and change.

“Andrew and Ravi have made important contributions to Credit Acceptance during a period of modernization and change,” said Mr. Hegde. “Andrew helped strengthen our Product and Marketing capabilities and advanced important growth initiatives, while Ravi helped modernize our technology foundation and accelerate the delivery of digital capabilities. We are grateful for their leadership and appreciate their continued support to help ensure a smooth transition.”

Finally, Kenneth Booth announced his retirement from the Company’s board of directors (the “Board”) on July 21, 2026. In November 2025, Mr. Booth had agreed to remain on the Company’s Board to support Mr. Hegde’s transition to Chief Executive Officer following his long career with Credit Acceptance, which included serving as the Chief Executive Officer and President. The Board has reduced its size from six to five directors with no immediate plans to add another director.

“After a more than 20-year career with Credit Acceptance, I remained on the Board to support Vinayak and the executive team and helped ensure the Company was well positioned for continued success. With that transition now complete, I believe this is the right time for me to retire from the Board,” Mr. Booth said. “While I am stepping away from my formal role, I will continue to be a proud shareholder and supporter of the Company."

“Ken's leadership and stewardship have had a profound impact on Credit Acceptance. He helped build a strong and enduring Company while remaining deeply committed to our mission and values. We are grateful for his many contributions and for the support he provided,” Mr. Hegde said. “On behalf of everyone at Credit Acceptance, I thank Ken for his service and wish him the very best in retirement.”

Together, these changes are designed to support continuity in execution and align the Company’s leadership structure with our next phase of growth.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

Making a loan is a big decision for a lender. The lender must assess the likelihood of repayment in a timely fashion. The higher the loan's risk, however, the higher the interest rate the lender can charge. So there are trade-offs that have to be made. The auto loan space has a history of companies taking on too much risk. That is a problem for investors today, as subprime auto loan delinquency rates are high.

Be careful how much risk you take on When you buy a stock, you become a part-owner of the business. This is why it is so important to understand the companies you invest in. If you don't fully understand what the business is doing, you can't properly assess the risks and potential rewards of the investment. This is particularly important for companies that make auto loans.

Image source: Getty Images.

Subprime auto lenders can make huge profits when times are good because of the shockingly high rates they can charge customers. But during a recession, their customers often stop paying. And that can cause deep financial strain for subprime auto lenders. Often, a recession isn't even necessary; it can just be an economic soft patch.

For example, subprime auto lenders American Car Center and U.S. Auto Sales both ran into trouble in 2023. In 2025, Tricolor Holdings hit the skids, though it was accused of fraud, so other factors were at play. And in mid-2026, America's Car-Mart (CRMT 6.90%) was forced to work with its lenders to help it survive. The 60-day delinquency rate, which rose to a historical high at the start of 2026, is not a good sign for this niche of the auto-lending industry.

The subprime auto loan delinquency rate began 2026 at around 6.8%. The 60-day delinquency rate remains above levels seen during the Great Recession. Investors need to pay close attention to lenders such as OneMain Holdings (OMF +0.70%) and Credit Acceptance (CACC 0.18%).

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What's the situation with high-risk loans? OneMain Holdings 30-day delinquency rate was 5.37% in the first quarter, down from 5.85% in the December quarter, but up from the prior year's 5.16%. Charge-offs rose from 7.83% to 8.02% year over year. The company isn't exactly falling off a cliff, but the credit situation appears to be weakening. Credit Acceptance's first quarter 2026 update showed that loans made between 2021 and 2024 have been underperforming expectations. Even 2026 loans haven't been performing as well as hoped.

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201.52

This is where investors should step back and consider a pivot. Bank and credit card processor Capital One Financial (COF +0.71%), for example, works with lower-credit-quality customers, but it is more stringent about who it lends to. It issues credit cards and makes auto loans, with a combined 30-day delinquency rate of 3.24%. That was down from the December quarter's 3.59% and from the same quarter of 2025, when the rate was 3.51%. To be fair, Capital One's 30-day delinquency rate on autoloans is higher, at 4.21%, but that's down from 5.23% in the fourth quarter of 2025 and 4.93% in the year-ago period. In other words, Capital One's business is holding up much better, likely thanks to its more discerning lending approach.

It is time to be prudent Most investors should probably avoid businesses that make car loans to financially troubled customers. That's true most of the time, but particularly true right now, with delinquency rates rising. However, if you are interested in the sector, likely thanks to the higher interest rates that can be charged to customers, you should probably err on the side of caution. Capital One is a way to get exposure to lower-quality customers without betting the bank on the highest-risk niche of the auto lending space. Notably, the delinquency rate for higher-quality auto loans is historically low.

Writing on X, Citron said critics have the comparison to goeasy completely backwards.

“goeasy just handed us the best proof yet of why CACC is the only non-prime lender worth owning,” Citron posted Friday.

goeasy’s Numbers Tell the StoryAndrew Left’s Citron pointed directly to goeasy’s recent results as the contrast it needed.

The firm cited $330 million in quarterly charge-offs, an emergency restructuring, and a merchant channel collapse at the Canadian lender.

Citron is waiting on an 8-K that it says will disclose the settlement details.

“That’s what non-prime lending looks like without CACC’s dealer-first structure, 30-year collections infrastructure, and pool-level loss pricing built in from day one,” Citron wrote.

What Separates CACC From the PackCitron’s argument centers on structural discipline, not growth chasing.

CACC has operated through every credit cycle since 1972 without pivoting its model.

While goeasy expanded into powersports dealerships, CACC stayed focused.

“CACC doesn’t chase volume. It doesn’t need to,” Citron wrote Friday.

The firm also highlighted CACC’s aggressive buyback program. Citron previously noted the company retired 61% of its float since 2011 and repurchased 12.6% of the entire company in 2025 alone.

Short Interest Falls, But Caution RemainsShort interest in CACC declined in the latest reporting period, dropping from 1.18 million to 1.10 million shares, per Benzinga data.

Short sellers still hold 30% of the company’s publicly available float.

At an average daily volume of 206,770 shares, it would take 5.3 days for shorts to cover without pushing the stock sharply higher.

CACC Price Action: Credit Acceptance shares were down 6.54% at $461.68 at the time of publication on Friday, according to Benzinga Pro data.

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Lower interest rates and easing lending standards are brightening the outlook for the Zacks Consumer Loans industry. The Federal Reserve’s interest rate cuts and signs of decent economic growth are expected to sustain and even boost loan demand, supporting top-line growth.

While improved consumer credit scores and looser lending criteria are expanding the borrower base, muted consumer confidence is a concern. Despite several credit quality metrics creeping above the pre-pandemic levels, lower rates will likely support repayment capacity. So, industry players like Credit Acceptance Corporation (CACC - Free Report) , Enova International, Inc. (ENVA - Free Report) and Encore Capital Group, Inc. (ECPG - Free Report) are worth betting on.

About the Industry The Zacks Consumer Loans industry comprises companies that provide mortgages, refinancing, home equity lines of credit, credit card loans, automobile loans, education/student loans and personal loans, among others. These help the industry players generate net interest income (NII), which forms the most important part of total revenues. The prospects of the companies in this industry are highly sensitive to the nation’s overall economic condition and consumer sentiments. In addition to offering the above-mentioned products and services, many consumer loan providers are involved in businesses like commercial lending, insurance, loan servicing and asset recovery. These support the companies in generating fee revenues. Furthermore, this helps the firms diversify revenue sources and be less dependent on the vagaries of the economy.

3 Themes Driving the Consumer Loan Industry's Future Interest Rates & Loan Demand: The Federal Reserve has lowered interest rates by 175 basis points since 2024. However, any further near-term cut is less likely given the ongoing Middle East conflict and its impact on inflation. Moreover, consumer confidence has been subdued since late 2025 because of concerns related to jobs, income and high prices. In February, the Expectations Index remained below 80 for 13 straight months, a level that historically signals potential recession. Despite this, demand for consumer loans is expected to remain stable and even improve as rates remain low compared with historically high levels seen in 2024. Hence, industry players are expected to witness modest growth in net interest margin and NII going forward.

Lending Standards: With the nation’s big credit reporting agencies removing all tax liens from consumer credit reports since 2018, several consumers' credit scores have improved. This has raised the number of consumers for the industry participants. Further, easing credit lending standards is helping consumer loan providers meet loan demand.

Asset Quality: While lower interest rates will help borrowers to remain current on loan and interest repayments, the lingering macroeconomic and geopolitical headwinds are expected to result in persistent inflation. This will likely hurt borrowers' paying capacity to some extent. Hence, consumer loan providers are likely to set aside a huge amount of money for potential delinquent loans. Also, several credit quality metrics are trending above pre-pandemic levels.

Zacks Industry Rank Reflects a Bright Picture The Zacks Consumer Loans industry is a 12-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #15, which places it in the top 6% of more than 240 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimates for 2026 and 2027 have been revised upward by 25% and 10.4%, respectively.

Before we present a few stocks that you may want to add to your portfolio, let's take a look at the industry’s recent stock market performance and valuation picture.

Industry vs. Broader Market The Zacks Consumer Loans industry has impressively outperformed the Zacks S&P 500 composite and its sector over the past two years.

The stocks in this industry have collectively soared 45.3% over this period, while the Zacks S&P 500 composite and the Zacks Finance sector have risen 29.7% and 24.3%, respectively.

Two-Year Price Performance

Industry Valuation One might get a good sense of the industry’s relative valuation by looking at its price-to-book ratio (P/B), commonly used for valuing consumer loan stocks because of significant variations in their financial performance from one quarter to the next.

The industry currently has a trailing 12-month P/B of 0.67X, below the median level of 0.77X over the past five years. This compares with the highest level of 1.07X and the lowest level of 0.55X over this period. The industry is trading at a considerable discount compared with the market at large, as the trailing 12-month P/B for the S&P 500 is 7.72X and the median level is 8.09X.

Price-to-Book Ratio (TTM)

As finance stocks typically have a lower P/B, comparing consumer loan providers with the S&P 500 may not make sense to many investors. However, comparing the group’s P/B ratio with that of its broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/B of 4.01X for the same period is way above the Zacks Consumer Loan industry’s ratio, as the chart below shows.

Price-to-Book Ratio (TTM)

3 Consumer Loan Stocks to Consider Credit Acceptance Corporation: Headquartered in Southfield, MI, CACC offers financing programs and related products and services to automobile dealers across the United States, enabling them to sell vehicles to consumers irrespective of their credit history. Further, it is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company.

Revenue growth remains a major positive for Credit Acceptance, with the same witnessing a five-year (2020-2025) compound annual growth rate (CAGR) of 6.8%. Growth is primarily attributable to a steady rise in finance charges, which is also the main revenue component (accounting for 92.4% of total revenues in 2025).

While finance charges are likely to witness headwinds from macroeconomic factors in the near term, the same will rebound once the operating backdrop improves. A decent rise in dealer enrolments and active dealers is also expected to support the company’s top-line growth.

The Zacks Consensus Estimate for earnings for 2026 and 2027 suggests growth of 17.6% and 12.9%, respectively. Shares of this Zacks Rank #2 (Buy) company have lost 1.5% over the past six months. It has a market cap of $4.8 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: CACC

Enova International: Based in Chicago, IL, Enova is a leading financial technology company focused on providing online financial services. The company caters to small businesses and capitalizes on its proprietary technology, analytics and customer service capabilities to underwrite and fund loans.

Being an early entrant into online lending, the company has completed almost 65 million customer transactions and collected approximately 66 terabytes of consumer behavior data since its launch in 2004. This has enabled Enova to better analyze its specific customer base. This Zacks Rank #2 company’s proprietary underwriting systems leverage advanced risk analytics, including machine learning and artificial intelligence.

Moreover, the company has been diversifying its operations, which will support its long-term growth. In December 2025, the company agreed to acquire Grasshopper Bancorp, which will uplift its earnings over time. This will also expand the company’s ability to deliver a more comprehensive suite of financial products through a national bank charter, expanding access to credit to those who were traditionally underserved by banks.

The Zacks Consensus Estimate for earnings for 2026 and 2027 indicates an increase of 21.8% and 13.8%, respectively. Also, ENVA’s shares have gained 9.9% over the past six months. It has a market cap of $3.4 billion.

Price and Consensus: ENVA

Encore Capital: Based in San Diego, CA, ECPG provides debt recovery and related financial services worldwide. Through its global subsidiaries, the company acquires portfolios of charged-off consumer receivables from leading banks, credit unions and utility providers, leveraging data-driven strategies to optimize collections and portfolio performance.

Encore Capital plans to leverage its leadership position in portfolio purchasing and recovery as well as credit management services to bolster its market share worldwide. Over the years, the company’s portfolio purchases and collections have increased, which supported its top-line expansion.

With rising delinquency/charge-off rates in the United States, there is more supply of non-performing loans. This offers Encore Capital an additional opportunity to purchase portfolios and apply its analytics and collections capabilities for higher returns. Additionally, as interest rates decline and borrowers' ability to repay loans improves, the company’s collections will likely become steadier.

This Zacks Rank #1 stock has soared 62.1% over the past six months. ECPG’s earnings are expected to rise 9.7% in 2026 and 7.3% in 2027. The company has a market cap of $1.6 billion.

Price and Consensus: ECPG

 

On April 17, 2026, Credit Acceptance Corp (CACC) shares rose 6.8% to a current price of $527.56. The stock has experienced a notable increase over the past mont

Southfield, Michigan, April 27, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that Robert Bourrier has joined the Company as Chief Sales Officer.

In this role, Mr. Bourrier will lead and scale Credit Acceptance’s national sales organization with a focus on sustained revenue growth, market share expansion, and disciplined financial performance. Partnering closely with the executive leadership team, he will be responsible for translating enterprise strategy into consistent, measurable execution across all markets. His responsibilities include shaping and executing our sales strategy, strengthening operating rhythms and performance management, developing sales talent and leadership, and ensuring strong go-to-market efforts to deliver a consistent dealer and consumer experience.

“Robert strengthens our ability to turn our customer-centric strategy into consistent execution,” said Vinayak Hegde, Chief Executive Officer. “As we scale, discipline in how we operate is foundational to our success. Robert brings extensive experience leading sales organizations serving a wide range of customers, from small and mid-sized businesses to large enterprises, which aligns well with the diversity and scale of our dealer network. His expertise in building the teams, systems, and operating rhythms we need will be instrumental in helping deliver results for our customers and shareholders.”

Mr. Bourrier brings more than 25 years of sales and commercial leadership experience to Credit Acceptance. Throughout his career he has progressed through roles of increasing responsibility, developing a practical, end-to-end understanding of sales strategy, operations, and execution. Most recently, he led corporate marketplace efforts at Wheels Up, a leading private aviation platform, and he previously held senior leadership roles overseeing global corporate agreements at Delta Air Lines and Air Canada, where he consistently delivered results across enterprise customer segments.

“Credit Acceptance has a powerful mission to change lives,” said Robert Bourrier, Chief Sales Officer. “I plan to build on this strong foundation by applying the lessons I have learned throughout my career. I’m honored and excited to lead a team with dedicated and passionate sales professionals as we strengthen our strategy to drive growth and stronger customer outcomes.”

Mr. Bourrier’s hiring reflects Credit Acceptance’s continued focus on strengthening execution and scaling enterprise capabilities to support disciplined growth.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.The concentration in several states of automobile dealers who participate in our programs could adversely affect us.Reliance on our outsourced business functions could adversely affect our business.Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.We may be unable to execute our business strategy due to current economic conditions.Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders. Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.The terms of our debt limit how we conduct our business.A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations. Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.The development and use of artificial intelligence presents risks and challenges that may adversely impact our business. Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.The regulations to which we are or may become subject could result in a material adverse effect on our business.

Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.  

Without our financing programs, consumers are often unable to purchase vehicles, or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

On April 29, 2026, Credit Acceptance Corp (CACC) shares fell 3.1%, bringing the current price to $500.62. This decline comes amid a 52-week price range of $401.

Southfield, Michigan, May 05, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $135.8 million, or $12.40 per diluted share, for the three months ended March 31, 2026. Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2026 was $117.3 million, or $10.71 per diluted share. The following table summarizes our financial results:

(In millions, except per share data) For the Three Months Ended  March 31, 2026 December 31, 2025 March 31, 2025GAAP net income $        135.8  $        122.0  $        106.3 GAAP net income per diluted share $        12.40  $        10.99  $        8.66 Adjusted net income $        117.3  $        126.0  $        114.8 Adjusted net income per diluted share $        10.71  $        11.35  $        9.35  “This quarter’s results reflect meaningful progress across our business, with reduced volatility in loan forecast changes and moderation in unit volume declines,” said Vinayak Hegde, Chief Executive Officer of Credit Acceptance. “These trends reinforce our focus on disciplined investment and execution as we work to maximize long‑term economic profit.”

First Quarter 2026 Financial Highlights

$7.9 billion average balance of our loan portfolio, consistent with the first quarter of 2025.Consumer Loan assignment unit volume of 95,992 and dollar volume of $1.1 billion, down 4.3% and 4.0%, respectively, compared to the first quarter of 2025.Forecasted net cash flows from our loan portfolio declined modestly by $9.1 million, or 0.1%, representing the smallest quarterly change in the past three years.365,258 shares, or 3.4% of the shares outstanding at the beginning of the quarter, were repurchased at a cost of $178.9 million.$47.1 million in dealer holdback and accelerated dealer holdback payments to dealers.$1.3 billion in liquidity (unrestricted cash and cash equivalents and amounts available for borrowing under revolving lines of credit) as of March 31, 2026. “We continue to make tangible progress executing our product roadmap,” said Mr. Hegde. “From record active dealers to increased adoption of our digital tools, these initiatives are designed to help dealers operate more efficiently while enabling us to scale our underwriting and servicing capabilities in a disciplined way.”

First Quarter 2026 Company Highlights

Enrolled 1,526 new dealers in our programs with a record 10,977 active dealers during the quarter, reflecting continued engagement across our dealer network.Made continued progress executing our product roadmap, including the following initiatives: AI-enabled call-center agent: In March 2026, 27% of inbound customer service and account solutions calls were routed to the AI agent, up from 6% in December 2025. We expect to further expand use of this agent in 2026, supporting more efficient and scalable servicing operations and enabling consumers to quickly access account information and complete payments.Digital credit applications: The number of dealers using our digital applications product continues to grow, helping dealers more efficiently and securely capture consumer information across in‑store, web, and marketing channels. During the first quarter of 2026, 2,383 dealers used this product, up 30% from the previous quarter.New contract origination experience for dealers: Since its February 2026 expansion, nearly 2,000 dealers have enabled this experience as we focus on testing, learning, and refining the workflow. The experience is designed to support how franchise and large independent dealers operate in today’s market, with features including deeper RouteOne e‑contracting integration, enhanced deal‑structuring and optimization tools, and broader support for finance and insurance products. Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested. 

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2026, with the aggregated forecasts as of December 31, 2025 and at the time of assignment, segmented by year of assignment:

  Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan Assignment Year March 31, 2026  December 31, 2025 Initial
Forecast  December 31, 2025 Initial
Forecast2017         64.8 %          64.8 %         64.0 %          0.0 %         0.8 %2018         65.6 %          65.5 %         63.6 %          0.1 %         2.0 %2019         67.3 %          67.2 %         64.0 %          0.1 %         3.3 %2020         68.1 %          68.0 %         63.4 %          0.1 %         4.7 %2021         64.0 %          63.8 %         66.3 %          0.2 %         -2.3 %2022         59.3 %          59.3 %         67.5 %          0.0 %         -8.2 %2023         63.1 %          63.3 %         67.5 %          -0.2 %         -4.4 %2024         65.3 %          65.3 %         67.2 %          0.0 %         -1.9 %2025         67.2 %          67.2 %         67.0 %          0.0 %         0.2 %2026         66.3 %          —           66.6 %          —           -0.3 % (1)   Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment, including both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates. As a result, any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.

For the three months ended March 31, 2026, forecasted collection rates improved for Consumer Loans assigned in 2021, declined for Consumer Loans assigned in 2023, and were generally consistent with expectations at the start of the period for all other assignment years presented. For Consumer Loans assigned in 2026, the decline in the current forecasted collection rate from the initial forecast primarily reflects the impact of canceled Consumer Loans, as described in the footnote to the table above. These Consumer Loans are not seasoned enough for changes in forecasted collection rates to be meaningfully influenced by performance.

The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last eight quarters are shown in the following table:

(Dollars in millions) Decrease in Forecasted Net Cash FlowsThree Months Ended Total Loans % Change from Forecast at Beginning of PeriodJune 30, 2024 $        (189.3)          -1.7 %September 30, 2024          (62.8)          -0.6 %December 31, 2024          (31.1)          -0.3 %March 31, 2025          (20.9)          -0.2 %June 30, 2025          (55.8)          -0.5 %September 30, 2025          (58.6)          -0.5 %December 31, 2025          (34.2)          -0.3 %March 31, 2026          (9.1)          -0.1 % The following table presents information on Consumer Loan assignments for each of the last 10 years:

   Average Total Assignment Volume Consumer Loan
Assignment Year Consumer Loan (1) Advance (2) Initial Loan Term (in months) Unit Volume Dollar Volume (2)
(in millions)2017 $        20,230 $        8,746 55 328,507 $        2,873.12018  22,158  9,635 57 373,329  3,595.82019  23,139  10,174 57 369,805  3,772.22020  24,262  10,656 59 341,967  3,641.22021  25,632  11,790 59 268,730  3,167.82022  27,242  12,924 60 280,467  3,625.32023  27,025  12,475 61 332,499  4,147.82024  26,497  11,961 61 386,126  4,618.42025  25,423  11,428 60 337,411  3,856.12026 (3)  25,050  11,132 60 95,992  1,068.6 (1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.
(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.
(3)   Represents activity for the three months ended March 31, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2026, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

  Forecasted Collection % as of   Spread % as of   Consumer Loan Assignment Year March 31, 2026 Initial Forecast Advance % (1) March 31, 2026 Initial Forecast % of Forecast
Realized (2)2017         64.8 %         64.0 %         43.2 %         21.6 %         20.8 %         99.6 %2018         65.6 %         63.6 %         43.5 %         22.1 %         20.1 %         99.3 %2019         67.3 %         64.0 %         44.0 %         23.3 %         20.0 %         98.8 %2020         68.1 %         63.4 %         43.9 %         24.2 %         19.5 %         97.5 %2021         64.0 %         66.3 %         46.0 %         18.0 %         20.3 %         93.9 %2022         59.3 %         67.5 %         47.4 %         11.9 %         20.1 %         84.6 %2023         63.1 %         67.5 %         46.2 %         16.9 %         21.3 %         70.0 %2024         65.3 %         67.2 %         45.1 %         20.2 %         22.1 %         49.9 %2025         67.2 %         67.0 %         45.0 %         22.2 %         22.0 %         23.1 %2026         66.3 %         66.6 %         44.5 %         21.8 %         22.1 %         2.5 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.
(2)   Presented as a percentage of total forecasted collections.

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2021 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of March 31, 2026 and the advance rate ranges from 11.9% to 24.2%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2021 through 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The lower spread for 2026 Consumer Loans relative to 2025 Consumer Loans as of March 31, 2026 was primarily a result of Consumer Loan performance, as the performance of 2026 Consumer Loans has been lower than our initial estimates while performance of 2025 Consumer Loans has exceeded our initial estimates.

The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2026 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

  Dealer Loans Purchased Loans  Forecasted Collection Percentage as of (1)   Forecasted Collection Percentage as of (1)   Consumer Loan Assignment Year March 31,
2026 Initial
Forecast Variance March 31,
2026 Initial
Forecast Variance2017         64.1 %         63.8 %         0.3 %         66.4 %         64.6 %         1.8 %2018         65.0 %         63.6 %         1.4 %         66.8 %         63.5 %         3.3 %2019         66.9 %         63.9 %         3.0 %         67.9 %         64.2 %         3.7 %2020         67.9 %         63.3 %         4.6 %         68.4 %         63.6 %         4.8 %2021         63.7 %         66.3 %         -2.6 %         64.6 %         66.3 %         -1.7 %2022         58.5 %         67.3 %         -8.8 %         61.3 %         68.0 %         -6.7 %2023         61.9 %         66.8 %         -4.9 %         66.6 %         69.4 %         -2.8 %2024         64.0 %         66.3 %         -2.3 %         69.8 %         70.7 %         -0.9 %2025         65.6 %         65.5 %         0.1 %         71.7 %         71.5 %         0.2 %2026         65.1 %         65.3 %         -0.2 %         69.7 %         69.9 %         -0.2 % (1)   The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment, including both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates. As a result, any declines in forecasted collection rates for Consumer Loans assigned in the most recent quarter primarily reflect the impact of cancellations rather than underlying Consumer Loan performance.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of March 31, 2026 for dealer loans and purchased loans separately.  All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

  Dealer Loans Purchased Loans Consumer Loan Assignment Year Forecasted Collection % (1) Advance % (1)(2) Spread % Forecasted Collection % (1) Advance % (1)(2) Spread %2017         64.1 %         42.1 %         22.0 %         66.4 %         45.8 %         20.6 %2018         65.0 %         42.7 %         22.3 %         66.8 %         45.2 %         21.6 %2019         66.9 %         43.1 %         23.8 %         67.9 %         45.6 %         22.3 %2020         67.9 %         43.0 %         24.9 %         68.4 %         45.5 %         22.9 %2021         63.7 %         45.1 %         18.6 %         64.6 %         47.7 %         16.9 %2022         58.5 %         46.4 %         12.1 %         61.3 %         50.1 %         11.2 %2023         61.9 %         44.8 %         17.1 %         66.6 %         49.8 %         16.8 %2024         64.0 %         44.1 %         19.9 %         69.8 %         48.9 %         20.9 %2025         65.6 %         43.2 %         22.4 %         71.7 %         50.4 %         21.3 %2026         65.1 %         42.7 %         22.4 %         69.7 %         49.2 %         20.5 % (1)   The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.
(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of March 31, 2026 on both 2026 and 2025 dealer loans was 22.4%, reflecting the net impact of two offsetting factors. Consumer Loan performance decreased the spread from 2025 to 2026, primarily due to the performance of 2026 dealer loans, which has been lower than our initial estimates. The impact of Consumer Loan performance was offset by the higher initial spread on 2026 dealer loans, due to the advance rate decreasing by a greater margin than the initial forecast in our dealer loan portfolio.

The spread as of March 31, 2026 on 2026 purchased loans was 20.5%, as compared to a spread of 21.3% on 2025 purchased loans. The decrease was a result of (i) Consumer Loan performance, as the performance of 2026 purchased loans has been lower than our initial estimates while the performance of 2025 purchased loans has exceeded our initial estimates, and (ii) 2026 purchased loans having a lower initial spread, due to the initial forecast decreasing by a greater margin than the advance rate.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

  Year over Year Percent ChangeThree Months Ended Unit Volume Dollar Volume (1)June 30, 2024         20.9 %         16.3 %September 30, 2024         17.7 %         12.2 %December 31, 2024         0.3 %         -4.9 %March 31, 2025         -10.1 %         -15.5 %June 30, 2025         -14.6 %         -18.8 %September 30, 2025         -16.5 %         -19.4 %December 31, 2025         -9.1 %         -11.3 %March 31, 2026         -4.3 %         -4.0 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit and dollar volumes declined 4.3% and 4.0%, respectively, during the first quarter of 2026 as the number of active dealers increased 1.7% and the average unit volume per active dealer declined 6.5%. Unit volume for April 2026 decreased 5.1% compared to the same period in 2025.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

 For the Three Months Ended March 31,   2026 2025 % ChangeConsumer Loan unit volume        95,992          100,278          -4.3 %Active dealers (1)        10,977          10,789          1.7 %Average volume per active dealer        8.7          9.3          -6.5 %      Consumer Loan unit volume from dealers active both periods        77,990          83,678          -6.8 %Dealers active both periods        7,005          7,005          —  Average volume per dealer active both periods        11.1          11.9          -6.8 %      Consumer loan unit volume from dealers not active both periods        18,002          16,600          8.4 %Dealers not active both periods        3,972          3,784          5.0 %Average volume per dealer not active both periods        4.5          4.4          2.3 % (1)   Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers: 

 For the Three Months Ended March 31,   2026  2025  % ChangeConsumer Loan unit volume from new active dealers        3,768           4,229           -10.9 %New active dealers (1)        1,265           1,195           5.9 %Average volume per new active dealer        3.0           3.5           -14.3 %      Attrition (2)        -16.6 %         -16.2 %   (1)   New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.
(2)   Attrition is measured according to the following formula:  decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

  Unit Volume Dollar Volume (1)Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased LoansJune 30, 2024         78.5 %         21.5 %         77.3 %         22.7 %September 30, 2024         79.5 %         20.5 %         78.4 %         21.6 %December 31, 2024         78.7 %         21.3 %         77.7 %         22.3 %March 31, 2025         77.0 %         23.0 %         75.1 %         24.9 %June 30, 2025         71.6 %         28.4 %         68.3 %         31.7 %September 30, 2025         73.1 %         26.9 %         70.6 %         29.4 %December 31, 2025         74.7 %         25.3 %         72.4 %         27.6 %March 31, 2026         72.0 %         28.0 %         69.2 %         30.8 % (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

As of March 31, 2026 and December 31, 2025, the net dealer loans receivable balance was 71.7% and 72.1%, respectively, of the total net loans receivable balance. In 2025, we expanded dealer access to the purchase program for Consumer Loans to consumers with higher credit ratings. The higher percentage of purchased loans in Consumer Loan assignment volume since 2024 has been primarily related to Consumer Loans assigned under this expanded dealer access.

Financial Results

(Dollars in millions, except per share data)For the Three Months Ended March 31,    2026  2025 % ChangeGAAP average debt$        6,271.8  $        6,398.3          -2.0 %GAAP average shareholders' equity         1,575.4           1,782.0          -11.6 %Average capital$        7,847.2  $        8,180.3          -4.1 %GAAP net income$        135.8  $        106.3          27.8 %Diluted weighted average shares outstanding 10,954,097   12,279,446          -10.8 %GAAP net income per diluted share$        12.40  $        8.66          43.2 % The increase in GAAP net income for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily a result of the following:

A decrease in provision for credit losses of 13.8% ($22.3 million), primarily due to a decrease in provision for credit losses on forecast changes of $21.9 million, reflecting a smaller decline in Consumer Loan performance and changes in forecasted net cash flow timing. In the first quarter of 2026, we continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments.An increase in finance charges of 2.2% ($11.7 million), primarily due to an increase in the average yield on our loan portfolio primarily due to higher contractual yields on more recent Consumer Loan assignments.A decrease in interest expense of 5.5% ($6.3 million), due to decreases in our average cost of debt and our average outstanding debt balance.An increase in provision for income taxes of 10.7% ($3.8 million), primarily due to an increase in pre-tax income.An increase in operating expenses of 4.2% ($5.7 million), due to: An increase in sales and marketing expense of 12.1% ($3.0 million), primarily due to increases in the size of our sales force and advertising expenses.An increase in general and administrative expense of 12.2% ($2.7 million), primarily due to higher professional services costs related to strategic market analysis initiatives. Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” section. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, interest expense (after-tax), adjusted net income plus interest expense (after-tax), adjusted return on capital, adjusted revenue, adjusted operating expenses, adjusted loans receivable, adjusted finance charges, adjusted average loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months ended March 31, 2026, compared to the same period in 2025, include the following:

(Dollars in millions, except per share data)For the Three Months Ended March 31,    2026   2025  % ChangeAdjusted average capital$        8,537.7   $        8,882.6           -3.9 %Adjusted net income$        117.3   $        114.8           2.2 %Interest expense (after-tax)$        81.2   $        88.3           -8.0 %Adjusted net income plus interest expense (after-tax)$        198.5   $        203.1           -2.3 %Adjusted return on capital         9.3 %          9.2 %         1.1 %Cost of capital         7.4 %          7.6 %         -2.6 %Economic profit$        41.6   $        35.3           17.8 %Diluted weighted average shares outstanding 10,954,097    12,279,446           -10.8 %Adjusted net income per diluted share$        10.71   $        9.35           14.5 %Economic profit per diluted share$        3.80   $        2.87           32.4 % Economic profit increased 17.8% for the three months ended March 31, 2026, as compared to the same period in 2025. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended March 31, 2026, as compared to the same period in 2025:

(In millions)Year over Year Change in Economic Profit For the Three Months Ended March 31, 2026Decrease in cost of capital$        4.5  Increase in adjusted return on capital         3.2  Decrease in adjusted average capital         (1.4) Increase in economic profit$        6.3   The increase in economic profit for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily a result of the following:

A decrease in our cost of capital, primarily due to a decrease in our cost of debt.An increase in our adjusted return on capital of 10 basis points, primarily due to: An increase in the yield used to recognize adjusted finance charges on our loan portfolio increased our adjusted return on capital by 80 basis points, primarily due to higher expected yields on more recent Consumer Loan assignments, partially offset by a decline in Consumer Loan performance and slower forecasted net cash flow timing since the first quarter of 2025. In the first quarter of 2026, we continued to experience slowing of forecasted net cash flow timing as a result of lower-than-expected Consumer Loan prepayments.An increase in adjusted operating expenses decreased our adjusted return on capital by 40 basis points as adjusted operating expenses increased by 4.2% while adjusted average capital decreased by 3.9%. The increase in adjusted operating expenses was primarily due to increases in the size of our sales force and advertising expenses, and higher professional services costs related to strategic market analysis initiatives. The following table shows adjusted finance charges as a percentage of adjusted average loans receivable, adjusted revenue and adjusted operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

  For the Three Months Ended  Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024 Jun. 30, 2024Adjusted finance charges as a percentage of adjusted average loans receivable (1)         17.0 %         16.9 %         16.8 %         17.0 %         16.7 %         16.5 %         16.4 %         17.8 %Adjusted revenue as a percentage of adjusted average capital (1)         19.0 %         18.8 %         18.6 %         18.3 %         18.0 %         18.4 %         18.2 %         19.6 %Adjusted operating expenses as a percentage of adjusted average capital (1)         6.6 %         5.8 %         6.1 %         5.9 %         6.1 %         5.6 %         5.8 %         6.1 %Adjusted return on capital (1)         9.3 %         9.8 %         9.4 %         9.3 %         9.2 %         9.8 %         9.6 %         10.3 %Percentage change in adjusted average capital compared to the same period in the prior year         -3.9 %         0.3 %         3.7 %         11.2 %         18.3 %         19.3 %         19.4 %         17.6 % (1)   Annualized.

The decrease in adjusted return on capital for the three months ended March 31, 2026, as compared to the three months ended December 31, 2025, was primarily due to:

Growth in adjusted operating expenses, which decreased adjusted return on capital by 60 basis points, as adjusted operating expenses increased by 11.6%, while adjusted average capital declined by 1.4%. The $14.7 million increase in adjusted operating expenses was due to: A $9.3 million increase in salaries and wages expense, primarily due to the seasonal impact of increases in fringe benefits, primarily due to an increase in accrued paid time off, and payroll taxes as a result of both taxes that are subject to income limitations and the taxes on annual vesting of equity awards in the first quarter of the year.A $2.8 million increase in adjusted general and administrative expense primarily due to higher professional services costs related to strategic market analysis initiatives.A $2.6 million increase in sales and marketing expense, primarily due to an increase in sales commissions driven by higher Consumer Loan assignment unit volume during the first quarter of the year. An increase in yield used to recognize adjusted finance charges on our loan portfolio, which increased our adjusted return on capital by 20 basis points, primarily due to higher yields on more recent Consumer Loan assignments. The following tables provide a reconciliation of non-GAAP measures to GAAP measures.  Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data) For the Three Months Ended  Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024 Jun. 30, 2024Adjusted net income                GAAP net income (loss) $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9   $        78.8   $        (47.1) Floating yield adjustment (after-tax)          (118.7)           (115.9)           (119.0)           (117.1)           (118.9)           (116.8)           (115.1)           (96.1) GAAP provision for credit losses (after-tax)          104.7            97.2            114.0            129.6            124.6            95.0            142.2            246.9  Loss on sale of building (after-tax) (1)          —            —            —            —            —            —            —            18.3  Contingent loss (after-tax) (2)          —            26.9            11.2            17.5            —            —            5.7            0.8  Income tax adjustment (3)          (4.5)           (4.2)           3.5            0.9            2.8            (4.1)           3.2            4.4  Adjusted net income $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0   $        114.8   $        127.2  Adjusted net income per diluted share $        10.71   $        11.35   $        10.28   $        10.05   $        9.35   $        10.17   $        9.25   $        10.36  Diluted weighted average shares outstanding  10,954,097    11,103,715    11,472,729    11,771,525    12,279,446    12,388,072    12,415,143    12,282,174  Adjusted revenue                GAAP total revenue $        580.0   $        579.9   $        582.4   $        583.8   $        571.1   $        565.9   $        550.3   $        538.2  Floating yield adjustment          (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8)           (149.4)           (124.8) GAAP provision for claims          (15.8)           (17.2)           (18.6)           (19.8)           (16.1)           (17.7)           (18.5)           (20.3) Adjusted revenue $        406.0   $        408.2   $        405.1   $        408.0   $        400.5   $        396.4   $        382.4   $        393.1  Adjusted average capital                GAAP average debt $        6,271.8   $        6,409.6   $        6,400.1   $        6,583.8   $        6,398.3   $        6,202.5   $        6,071.1   $        5,818.2  GAAP average shareholders' equity          1,575.4            1,545.2            1,573.4            1,635.9            1,782.0            1,712.3            1,594.2            1,623.5  Income tax adjustment (4)          (96.9)           (96.9)           (96.9)           (100.5)           (118.5)           (118.5)           (118.5)           (118.5) Floating yield adjustment          787.4            805.0            822.6            813.5            820.8            837.0            840.8            710.1  Adjusted average equity          2,265.9            2,253.3            2,299.1            2,348.9            2,484.3            2,430.8            2,316.5            2,215.1  Adjusted average capital $        8,537.7   $        8,662.9   $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3   $        8,387.6   $        8,033.3   Adjusted revenue as a percentage of adjusted average capital (5)          19.0 %          18.8 %          18.6 %          18.3 %          18.0 %          18.4 %          18.2 %          19.6 %Adjusted loans receivable                GAAP loans receivable, net $        7,956.4   $        7,909.2   $        7,975.5   $        8,001.9   $        7,978.2   $        7,850.3   $        7,781.5   $        7,547.7  Floating yield adjustment          1,046.3            1,064.9            1,089.7            1,096.4            1,079.8            1,072.4            1,100.8            1,065.6  Adjusted loans receivable $        9,002.7   $        8,974.1   $        9,065.2   $        9,098.3   $        9,058.0   $        8,922.7   $        8,882.3   $        8,613.3  Adjusted loan yield                GAAP finance charges $        538.4   $        535.0   $        539.4   $        540.7   $        526.7   $        518.2   $        507.6   $        497.7  Floating yield adjustment          (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8)           (149.4)           (124.8) Adjusted finance charges $        380.2   $        380.5   $        380.7   $        384.7   $        372.2   $        366.4   $        358.2   $        372.9  GAAP average loans receivable, net $        7,893.7   $        7,940.5   $        7,990.5   $        8,011.6   $        7,882.4   $        7,831.4   $        7,690.9   $        7,499.2  Average floating yield adjustment          1,037.9            1,058.0            1,080.9            1,064.1            1,048.9            1,071.4            1,072.2            903.2  Adjusted average loans receivable $        8,931.6   $        8,998.5   $        9,071.4   $        9,075.7   $        8,931.3   $        8,902.8   $        8,763.1   $        8,402.4  Adjusted finance charges as a percentage of adjusted average loans receivable (5)          17.0 %          16.9 %          16.8 %          17.0 %          16.7 %          16.5 %          16.4 %          17.8 % (1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.
(2)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted net income.
(3)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment in December 2017 of Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”). The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(4)   The enactment of the 2017 Tax Act resulted in the reversal of provision for income taxes to reflect a new, lower federal statutory income tax rate. We began applying the income tax adjustment at that time to remove the impact of this reversal from adjusted average capital. As the enactment of Public Law 119-21 on July 4, 2025 made the lower federal statutory tax rate permanent, removing uncertainty on the future federal statutory income tax rate, we increased our estimated long-term effective income tax rate from 23% to 25% to reflect higher expected state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation in future periods. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
(5)   Annualized.

(Dollars in millions) For the Three Months Ended  Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024 Jun. 30, 2024Interest expense (after-tax)                GAAP interest expense $        108.4   $        113.8   $        116.3   $        118.1   $        114.7   $        111.3   $        111.2   $        104.5  Adjustment to record tax effect (1)          (27.2)           (28.5)           (29.0)           (29.5)           (26.4)           (25.6)           (25.6)           (24.0) Interest expense (after-tax) $        81.2   $        85.3   $        87.3   $        88.6   $        88.3   $        85.7   $        85.6   $        80.5  Adjusted return on capital (2)                Adjusted net income $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0   $        114.8   $        127.2  Interest expense (after-tax)          81.2            85.3            87.3            88.6            88.3            85.7            85.6            80.5  Adjusted net income plus interest expense (after-tax) $        198.5   $        211.3   $        205.2   $        206.9   $        203.1   $        211.7   $        200.4   $        207.7  Reconciliation of GAAP return on equity to adjusted return on capital (5)                GAAP return on equity (3)          34.5 %          31.6 %          27.5 %          21.4 %          23.9 %          35.5 %          19.8 %          -11.6 %Non-GAAP adjustments          -25.2 %          -21.8 %          -18.1 %          -12.1 %          -14.7 %          -25.7 %          -10.2 %          21.9 %Adjusted return on capital (2)          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %          9.6 %          10.3 %                 Economic profit                Adjusted return on capital          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %          9.6 %          10.3 %Cost of capital (4) (5)          7.4 %          7.3 %          7.5 %          7.4 %          7.6 %          7.4 %          7.3 %          7.5 %Adjusted return on capital in excess of cost of capital          1.9 %          2.5 %          1.9 %          1.9 %          1.6 %          2.4 %          2.3 %          2.8 %Adjusted average capital $        8,537.7   $        8,662.9   $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3   $        8,387.6   $        8,033.3      Economic profit $        41.6   $        53.3   $        43.0   $        41.8   $        35.3   $        51.3   $        47.1   $        57.0  Reconciliation of GAAP net income (loss) to economic profit                GAAP net income (loss) $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9   $        78.8   $        (47.1) Non-GAAP adjustments          (18.5)           4.0            9.7            30.9            8.5            (25.9)           36.0            174.3  Adjusted net income          117.3            126.0            117.9            118.3            114.8            126.0            114.8            127.2  Interest expense (after-tax)          81.2            85.3            87.3            88.6            88.3            85.7            85.6            80.5  Adjusted net income plus interest expense (after-tax)          198.5            211.3            205.2            206.9            203.1            211.7            200.4            207.7  Less: cost of capital          156.9            158.0            162.2            165.1            167.8            160.4            153.3            150.7  Economic profit $        41.6   $        53.3   $        43.0   $        41.8   $        35.3   $        51.3   $        47.1   $        57.0   Economic profit per diluted share $        3.80   $        4.80   $        3.75   $        3.55   $        2.87   $        4.14   $        3.79   $        4.64   Adjusted operating expenses                Operating expenses $        141.2   $        162.3   $        146.6   $        155.5    $        135.5   $        121.6   $        129.4   $        124.4  Contingent loss (6)          —            (35.8)           (15.0)           (23.4)           —            —            (7.4)           (1.0) Adjusted operating expenses $        141.2   $        126.5   $        131.6   $        132.1   $        135.5   $        121.6   $        122.0   $        123.4  Adjusted operating expenses as a percentage of adjusted average capital (5)          6.6 %          5.8 %          6.1 %          5.9 %          6.1 %          5.6 %          5.8 %          6.1 %Percentage change in adjusted average capital compared to the same period in the prior year          -3.9 %          0.3 %          3.7 %          11.2 %          18.3 %          19.3 %          19.4 %          17.6 % (1)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment of the 2017 Tax Act. The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(2)   Adjusted return on capital is defined as adjusted net income plus interest expense (after-tax) divided by adjusted average capital.
(3)        Calculated by dividing GAAP net income (loss) by GAAP average shareholders' equity.
(4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

  For the Three Months Ended  Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sept. 30, 2024 Jun. 30, 2024Average 30-year Treasury rate         4.8 %         4.7 %         4.9 %         4.8 %         4.7 %         4.4 %         4.3 %         4.6 %Pre-tax average cost of debt (5)         6.9 %         7.1 %         7.3 %         7.2 %         7.2 %         7.2 %         7.3 %         7.2 % (5)   Annualized.
(6)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted operating expenses.

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; andfinance charge revenue in subsequent periods that is significantly in excess of our expected yield. Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.The concentration in several states of automobile dealers who participate in our programs could adversely affect us.Reliance on our outsourced business functions could adversely affect our business.Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.We may be unable to execute our business strategy due to current economic conditions.Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders. Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.The terms of our debt limit how we conduct our business.A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations. Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.The development and use of artificial intelligence presents risks and challenges that may adversely impact our business. Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.The regulations to which we are or may become subject could result in a material adverse effect on our business. Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on May 5, 2026 at 5:00 p.m. Eastern Time to discuss our first quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 

To participate in the webcast by telephone, you must pre-register at https://register-conf.media-server.com/register/BI6eac0ef78a6d4e1186e9d83fe031a316, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

Investor Relations: Jay Brinkley
Senior Vice President & Treasurer
(248) 353-2700 Ext. 6739
[email protected]

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
        

(Dollars in millions, except per share data)For the Three Months Ended March 31,  2026  2025Revenue:   Finance charges$        538.4  $        526.7 Premiums earned         23.2           23.5 Other income         18.4           20.9 Total revenue         580.0           571.1 Costs and expenses:   Salaries and wages         88.6           88.6 General and administrative         24.8           22.1 Sales and marketing         27.8           24.8 Total operating expenses         141.2           135.5     Provision for credit losses on forecast changes         54.4           76.3 Provision for credit losses on new Consumer Loan assignments         85.2           85.6 Total provision for credit losses         139.6           161.9     Interest         108.4           114.7 Provision for claims         15.8           16.1 Loss on extinguishment of debt         —           1.2 Total costs and expenses         405.0           429.4 Income before provision for income taxes         175.0           141.7 Provision for income taxes         39.2           35.4 Net income$        135.8  $        106.3     Net income per share:   Basic$        12.64  $        8.79 Diluted$        12.40  $        8.66     Weighted average shares outstanding:   Basic         10,739,981           12,091,027 Diluted         10,954,097           12,279,446  CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)As of March 31, 2026 December 31, 2025ASSETS:   Cash and cash equivalents$        25.7   $        22.8  Restricted cash and cash equivalents         525.7            477.9  Restricted securities available for sale         109.4            106.2      Loans receivable         11,578.5            11,511.5  Allowance for credit losses         (3,622.1)           (3,602.3) Loans receivable, net         7,956.4            7,909.2      Property and equipment, net         13.2            12.6  Income taxes receivable         29.4            67.2  Other assets         34.8            35.8  Total assets$        8,694.6   $        8,631.7      LIABILITIES AND SHAREHOLDERS' EQUITY:   Liabilities:   Accounts payable and accrued liabilities$        415.3   $        400.2  Revolving secured lines of credit         219.6            107.3  Secured financing         5,100.3            5,158.8  Senior notes         1,088.7            1,087.8  Deferred income taxes, net         356.6            354.0  Total liabilities         7,180.5            7,108.1      Shareholders’ Equity:   Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued         —            —   Common stock, $.01 par value, 80,000,000 shares authorized, 10,423,120 and 10,680,143 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively         0.1            0.1  Paid-in capital         430.1            403.3  Retained earnings         1,083.6            1,119.2  Accumulated other comprehensive income         0.3            1.0  Total shareholders’ equity         1,514.1            1,523.6  Total liabilities and shareholders’ equity$        8,694.6   $        8,631.7  

Key Takeaways CACC Q1 adjusted EPS rose 14.5% y/y to $10.71, beating the consensus estimate of $10.61.Credit Acceptance revenues increased 1.6% y/y to $580M, aided by higher finance charges.CACC provision for credit losses fell 13.8% y/y, while operating expenses rose 4.2%. Credit Acceptance Corporation’s (CACC - Free Report)  first-quarter 2026 adjusted earnings per share of $10.71 surpassed the Zacks Consensus Estimate of $10.61. Also, the bottom line increased 14.5% year over year.

Results were aided by an improvement in revenues and lower provisions. However, an increase in operating expenses hurt the results to some extent.

Including non-recurring items, net income was $135.8 million or $12.40 per share compared with $106.3 million or $8.66 per share in the prior-year quarter.

CACC’s GAAP Revenues Improve, Operating Expenses RiseTotal GAAP revenues were $580 million, up 1.6% year over year. Increased finance charges supported revenue growth.

Provision for credit losses was $139.6 million, down 13.8% year over year.

Total operating expenses of $141.2 million increased 4.2% from the prior-year quarter.

As of March 31, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.

Total assets were $8.69 billion as of the same date, up marginally from Dec. 31, 2025. Total shareholders’ equity was $1.51 billion, down marginally from Dec. 31, 2025.

Our Take on Credit AcceptanceThe company is well-positioned for revenue growth, given the gradual increase in demand for consumer loans. Decent growth in dealer enrolments and active dealers is another positive. However, mounting expenses are expected to hurt CACC’s bottom-line growth to an extent in the near term.

Currently, Credit Acceptance carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of CACC’s PeersNavient Corporation (NAVI - Free Report) reported first-quarter 2026 earnings per share of 20 cents, surpassing the Zacks Consensus Estimate of 17 cents. It reported earnings of 28 cents in the prior-year quarter.

NAVI’s results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income and other income acted as headwinds.

Capital One’s (COF - Free Report) first-quarter 2026 adjusted earnings of $4.42 per share lagged the Zacks Consensus Estimate of $4.61. However, the bottom line was up from $4.06 in the prior-year quarter.

COF’s results were hurt by a jump in provisions, higher expenses and a lower loan balance. However, a rise in net interest income and higher non-interest income offered support.

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Stock to Watch: Credit Acceptance (CACC - Free Report) Headquartered in Southfield, MI, Credit Acceptance Corporation is a credit services company. Founded in 1972, the company operates as a single-segment business, offering financing programs and associated products and services to automobile dealers in the United States. This allows them to sell vehicles to consumers regardless of their credit history.

CACC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. CACC has a Momentum Style Score of B, and shares are up 10.4% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.00 to $47.50 per share. CACC boasts an average earnings surprise of +1.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CACC should be on investors' short list.

On June 08, 2026, Credit Acceptance Corp (CACC) shares rose 3.3% today, closing at $563.15. The stock has seen a 52-week range of $401.90 to $579.80, indicating

Southfield, Michigan, June 10, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”), a leading financial services company enabling automobile dealers to sell vehicles to consumers regardless of credit history, today announced the appointment of Joe Billante as Chief Financial Officer, effective July 27, 2026. Mr. Billante succeeds Jay Martin, who will retire on July 27 after 23 years of distinguished service to Credit Acceptance.

Joe Billante brings more than 25 years of executive leadership and finance experience across public company, private equity, and high-growth environments. Most recently, Mr. Billante served as Chief Financial Officer of Barracuda Networks, where he led global finance operations through a period of significant strategic transformation. Prior to that, he spent 13 years at eBay in a series of increasingly senior finance and business leadership roles, including CFO for eBay's core European and Greater China businesses, and Vice President of Investor Relations and Communications—where he managed the company's relationships with institutional investors, buy-side analysts, and shareholders, and led eBay's first Investor Day in nearly a decade. Before eBay, Mr. Billante spent 11 years at General Electric, including serving as CFO of a global division of GE Healthcare.

“We are thrilled to welcome Joe to Credit Acceptance,” said Vinayak Hegde, Chief Executive Officer. “Joe brings exceptional breadth—from deep operational finance experience at GE, to navigating complex investor and capital markets situations at eBay, to leading a full finance organization as CFO of Barracuda. As we continue building a more data-driven, customer-focused, and technology-enabled company, Joe's background as a true strategic partner—connecting financial discipline to long-term value creation—makes him exactly the right leader for this next chapter. We are confident he will be an outstanding partner to our team and to our shareholders as we continue to execute on our mission of changing lives.”

Mr. Billante added: “Credit Acceptance has built something truly differentiated—a company with a clear and compelling mission, a strong track record, and a culture that people are proud to be part of. I am honored to join this team and look forward to contributing to the Company's continued success.”

Jay Martin joined Credit Acceptance in 2003 and spent more than two decades as one of the company's most dedicated and trusted leaders. His career here was a testament to the power of deep institutional commitment — growing alongside the business, shaping its financial infrastructure, and serving as a steadfast steward of its integrity through every business cycle and period of strategic evolution.

“Jay is the embodiment of what Credit Acceptance is about,” said Mr. Hegde. “He joined this company over two decades ago and committed himself fully to its mission and its people. His leadership, deep financial expertise, and unwavering integrity have been a gift to this organization. We are enormously grateful for everything he has contributed, and we wish him a well-earned and fulfilling retirement.”

Mr. Martin reflected: “It has been the privilege of my career to serve Credit Acceptance and its mission of making vehicle ownership accessible to consumers who might not otherwise have that opportunity. I am proud of what our team has built, and I am confident the Company is in an exceptional position going forward. I am grateful to my colleagues, our leadership, and our shareholders for the trust they have placed in me over the years.”

As part of a planned transition, Mr. Martin will participate in Q2 earnings alongside management and remain actively engaged through August 31, 2026.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.